Benefits Software

When employees become eligible for new benefits, they are often confused and it requires a chunk or their time and your HR department's time to deal with the change. Good benefits software, however, can flag employees automatically when they become eligible for different packages. This makes it easier for you to notify the employee and offer materials to explain the basics of the new packages he might choose.

You also need software to track benefits for former employees. This may apply to people who were laid off or to retirees, whose benefits may freeze automatically or may change and then freeze at some point. Tracking pensions and health benefits for retirees can be quite time-consuming, so using benefits software to automate as much of the process as possible is generally the ideal.

Benefits Software that Helps with Governmental Compliance

Allow software to take care of the most bothersome intricacies of benefits administration--compliance with governmental regulations. A good software program will automatically update when you sign online (or go to the manufacturer's site) with the latest definitions and regulations, so that it can flag any potential problems you're going to encounter. You may find this most necessary with COBRA benefits, HIPAA compliance, or compliance with regulations about financial disclosure.

For example, when employees change or lose jobs, you are subject to HIPAA--the Health Insurance Portability and Accountability Act of 1996. This legislation protects coverage for employees who have been with you for some length or time and then are not, by their own choice or yours. It is highly unlikely that someone in the HR department of a small company (or a manager in a small company that doesn't even have an HR department) will be conversant with HIPAA's various rules, so software that can make sure that appropriate benefits are being offered for the right length of time can be a tremendous relief.